About Agribusiness Investing – Part Three

About Agribusiness Investing – Part Three

Food Security and Food Self-Sufficiency
[Part 3 of 5]

Few people are familiar with the term “Food Security.” While it is not yet common to most, it has begun to gain prominence and is today widely recognized in the Agribusiness community. According to the World Food Summit in 1996, food security meant that all people, at all times, have access to sufficient, safe, and nutritious food in order to maintain a healthy and active life.

Working toward food security for all is a major challenge given the changes to global population, dietary preferences, and climate concerns. These things require not only increases to global farming outputs, but also adjustments to the quantity of individual commodities produced. Food security is focused on access to food, while food self-sufficiency describes the ability of a country to domestically grow and produce adequate quantities of various agricultural commodities needed to meet the nutritional requirements of its population. Both go hand-in-hand.

The more developed a nation is, the better chance that the population of such nations have adequate access and sufficiency. Nations that currently have self-sufficiency deficiencies show that various agricultural raw materials may be a focus area for investment. Latin America has some advantages given the climate and available farmland, but still today some countries need greater transparency on land ownership rights and further growth in political democracy.

*Self-sufficiency ratio (of a country or region) equals domestic production divided by sum of domestic production minus net trade.

Continue to Part 4 of 5 in this series by clicking here.

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